Over the past several years, technology stocks have been among the assets that investors have paid close attention to.
However, warning signs resurfaced late last week when major technology stocks, especially in the U.S. market, fell sharply due to heavy sell-offs, particularly in AI- and semiconductor-related shares.
This has led investors to question whether investing in these highly valued tech stocks is still worth the risk.
It seems that revenue growth may not be keeping pace with the enormous costs invested in building new technology infrastructure, combined with growing macroeconomic concerns that have increased volatility in global stock markets.
Thairath Money takes a look at opinions from leading securities firms to delve deeper into what is really happening.
Research from Asia Plus Securities Company Limited notes that investors are beginning to question the value and risks of tech investments. Concerns have clearly entered tech stocks after U.S. tech markets plunged sharply last Friday, with examples of heavy declines including:
Along with rising worries about an AI bubble risk after massive capital was poured into building infrastructure, while revenues still lag behind costs. Signs of this appear in several companies, such as:
OPEN AI plans to spend $1.4 trillion over the next few years but currently has revenues far below costs, expected to burn through $115 billion until 2029 before starting to generate cash flow in 2030.
NVIDIA has invested as much as $100 billion, raising concerns about circular financing, while ALPHABET, MICROSOFT, AMAZON, and META plan to spend over $400 billion in the next 12 months. Yet AI-related revenues are still not covering costs, increasing risks to cash flow and dividend payments.
Asia Plus Securities points out that another key issue this week is central bank meetings, especially the Bank of Japan (BOJ) meeting on 19 Dec 2025 GMT+7.
Most analysts expect BOJ to raise interest rates to 0.75%, contrasting with the U.S. Federal Reserve's recent cut to 3.75%. This may heighten concerns about the "Yen Carry Trade," potentially causing capital to flow out of the U.S. and into Japan.
Historical data from 31 Jul to 16 Sep 2024 GMT+7 show the yen appreciated 7.8%, pressuring the dollar down about 3.6%. After BOJ's surprise rate hike, the S&P 500 experienced heavy volatility, falling about 8.5%. Even when BOJ raised rates as expected, U.S. stocks remained volatile.
. Analysts at Pi Securities Public Company Limited also note that although the Dow Jones closed only slightly down (-0.5%) last Friday, the S&P 500 and Nasdaq closed clearly lower due to heavy selling pressure in Technology stocks, which are key components of these indices.
This week, the U.S. stock market will need close attention on economic data and Technology stock movements to see if selling pressure eases.
Krungsri Securities analysis states that the U.S. market is now weighting tech stock risks more than positives after strong news pushed valuations high. For example, Broadcom, a chip seller, reported better-than-expected profits, but the market worries about profit margins in coming quarters because AI-related products have lower margins than other goods.
Moreover, Krungsri Securities notes that global capital flows are shifting from technology stocks to value stocks, which is positive for the Thai stock market. Combined with the baht's strongest level in 4.5 years, this creates positive sentiment for foreign capital inflows.
Krungsri recommends prominent investment themes:
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